Royal Bank of Canada, and Washington D.C.-based Ferris, Baker Watts, Incorporated (FBW), today announced the signing of a definitive merger agreement pursuant to which RBC Dain Rauscher Inc. will acquire FBW.

The details of the transaction were not disclosed. The acquisition is subject to customary closing conditions, including approval by U.S. and Canadian regulators and by FBW shareholders. The transaction is expected to be completed by mid 2008.

FBW, a privately held, employee-owned full-service broker-dealer and investment banking firm, has 42 branch offices and 15 Capital Markets/Support Services Offices in 10 states and the District of Columbia with more than 900 employees (330 of whom are financial consultants) and approximately US$18.5 billion in assets under administration.

“FBW represents a strong strategic and cultural fit for the U.S. wealth management business of RBC, and will significantly expand our presence in the Eastern, Midwest and Mid-Atlantic regions — all important markets for us,” says John Taft, president and CEO of RBC Dain Rauscher, the RBC subsidiary into which FBW will ultimately be combined.

“The acquisition of FBW demonstrates RBC’s continued commitment to building our wealth management presence in the U.S. and takes us one step closer to our goal of becoming a nationally recognized investment, advisory and wealth management firm,” addsTaft.

RBC Dain Rauscher Inc. is part of RBC’s Wealth Management segment, which directly serves affluent and high net worth clients in Canada, the United States, Latin America, Europe and Asia.